20 Ways Not to Go Broke While Still in College

If you’re about to head off to high education, or you’re already neck-deep in it and trying to figure out how to avoid going broke, check out these 20 methods that will keep some scratch in your pockets.

1. Employment: Maintain a real or digitally-based job.

Even part-time is better than being broke. If you can, try and secure a job working on-campus before you show up freshmen year, and then do whatever it takes to keep that job throughout college. Those 4 years of employment history will keep some money coming in (that isn’t a loan), and look fabulous on your post-college resume.

2. Budget: Huge slice of life here.

If you don’t learn how to budget money before you get out of college, you’re going to be in trouble. It’s simple. Just figure out exactly how much money is coming in and going out (bills & living expenses or needs). Then, use the wonders of budgeting to steer clear of going broke.

3. Avoid dating.

At the end of the day chasing down lovers is not only time consuming, it costs a fair amount of money. It’s so easy to spend money in an effort to increase your chances, right? Make education and managing your money your top priorities first.

Advertising

4. Invest: Invest some money the day before you head off to college.

Put it in something you can’t touch until after your expected graduation date. That way, you’ll earn a little passive income, and no matter how much is in your wallet, that investment means you’re technically not broke.

5. Start a web company.

Get some friends together, combine your skills, buddy up with some computer science kids and start a web company that offers any kind of simple web-based service or product. Create a lean tech-savvy start-up from your dorm rooms!

6. Save: Go into “save money” mode.

Since you’ve decided to master budgeting, dedicate yourself to saving at least 20% of your monthly income. It could either go into a “pay off loans” investment or account, or into a savings account so you have cash if you need it for emergencies or asset purchases.

7. Spend Wisely: You need to protect your money.

Learn that as soon as possible. The sooner you learn this life principle the less time you’ll have to spend wallowing in debt or being broke. See the clear difference between a want and a need. Be aware of why you are tempted to spend money. Don’t spend tons of money one tiny superficial and pointless purchase at a time.

Advertising

8. Reduce Loan Principles: Be smart about it.

If you’re taking on loans, read the fine print. Know exactly what you’re getting yourself into and take advantage of all realistic options available to you while in school to reduce your principle. When you’re not paying off the principle, is interest accumulating. If so, this is eating away at your monthly income even though it doesn’t seem like it.

9. Don’t use debit or credit.

There are two schools of thought here. One preaches that college students should use debit and build credit (there are banking institutions on many college campuses now). The other says it’s a bad idea. Debit cards make it too easy to spend money and credit can be vicious! Debit is easy to avoid, and in reality the credit needs for a college student should be almost non-existent.

10. Avoid fees.

Fees are literally everywhere you turn, and if you don’t know about them, you end up paying them. Many can be avoided by simply knowing of their existence. Start making it a habit to be fee-aware and avoid the unnecessary ones. Over 4 years, all these tiny little fees all over the place can really add up.

11. Grow food.

If you’re one of those students that rents a house and you’ve got some yard real estate, grow food! Seeds are cheap, gardening is easy, so it’s basically free food.

Advertising

12. Get free stuff.

Speaking of free, get all the free stuff you can and in college–there’s lots of it.

13. Get discounts.

: Students also get tons of discounts of tons of things, but you need to know of their existence and then take advantage of them. Seek them out. Become a bargain shopper in college!

14. Apply for free money.

Apply for free student money–for books, for classes, for tuition, whatever. You would be shocked to see how much money is given away to college kids every year. The trick is finding out about them and then taking the time to apply. Every little bit helps.

15. Hang with other broke people.

If you want to save money and live a lean lifestyle, stick with the like-minded.

Advertising

16. Rely on family & friends.

If you are lucky enough to have family and friends to rely on, then do so. Everyone knows you’re trying to better yourself and get ahead in life, so when they offer help, take it.

17. Barter

When you’re in college it’s a great time to start learning how to leverage what you have. When an opportunity to barter arises, capitalize on it.

18. Mobile Usage

Know how much your smartphone and mobile habits are costing you and keep them under wraps!

19. Pay bills on time.

Pay your bills on time, because it can lead to reduced rates, good payment history, better credit and all else.

20. Use the Internet

Set up a profile on one of the major freelancing websites. Become an affiliate blogger while in college. There are countless ways to make money online in your spare time!

How to Invest for Retirement (The Smart and Stress-Free Way)

When it comes to stocks, I bet you feel like you have no idea what you’re doing.

Everyone who’s not a financial expert has been there. I’ve been there. But, time is passing and you need to be crystal clear with how you’re investing for your retirement.

Otherwise, it’s back to work until you can afford not to. So, how can you invest for retirement when you’re not a financial expert?

You take the time to learn the fundamentals well. If you do, you can grow your wealth and retire happy. The best part is that you don’t need to be a financial expert to make smart investment decisions.

Here’s how to invest for retirement the smart and stress-free way:

1. Know Clearly Why You Invest

Odds are you already know why should invest for retirement.

But, maybe you know the wrong reasons. It’s time you get clear on why you’d like to retire. Here are some questions to help you get started:

Will you spend more time with your family?

What does retirement mean to you?

Are you looking to launch that business you’ve been holding off for years?

Everyone wants to retire but not for the same reasons. Once you’re clear for why retirement is important for you, you’ll focus on making it happen.

Investing in the stock market allows you to take advantage of compound interest.[1] All this means is that your money earns money on top of its interest. A reason why investment in the stock market is one of the best ways to plan for retirement.

2. Figure out When to Invest

“The best time to plant a tree was 20 years ago. The second best time is now.”– Chinese Proverb

It’s true if you’d had started investing when you were 10 years old, you’d have a lot more money than you do today.

The reality is that most people don’t start investing until it’s too late. So, if you’re currently waiting for the perfect time to start an investment, it would be today. Open your calendar and block out 2 to 3 hours to choose how you’ll invest for retirement.

Advertising

A quick way to get a snapshot of where you stand is to use Personal Capital. Input all your personal information and spend some time setting your retirement goals. Once completed, you’ll know where you stand with your retirement.

Having a savings account for retirement isn’t planning for retirement. Why? Your money loses value when you factor in US inflation.[2]

3. Evaluate Your Risk Tolerance to Create the Perfect Portfolio

Investing your money well depends on your emotions.

Why?

Because when the market drops most people panic and withdraw their money. On average, the US stock market yields an annual 6% to 7% ROI (return on your investment.) But, this won’t happen if you’re worried about short-term loses.

Before you invest your next dollar, know your risk tolerance.[3] Your risk tolerance determines the number of risky and safe investments you’d have.

Regardless of your investing style, you need to view investing for retirement as a long term game. Know that some years you’ll lose money but recoup this in the long-term.

4. Open a Reliable Retirement Account

Depending on your circumstance, you may need to open a new brokerage account. This is the account is where you’ll invest your money.

If you’re currently working for a company, odds are that they offer a 410K investing account. If so, here’s where you’ll invest most of your money. The only problem with this is that you’re limited to the stock options that are available.

You do have the option to open a separate IRA (individual retirement account.) Here are some of the best brokers:

Vanguard

TD Ameritrade

Charles Schwab

5. Challenge Yourself to Invest Consistently

Committing to invest for retirement is hard, but continuing to do so is harder.

Advertising

Once you’ve started investment for your retirement, you run at risk from stopping. Often you’ll want to contribute less, so you’d have more money in your pocket.

That’s why it’s important that you create a budget that allows you to invest each month. If you’re working for a company, you can set a percentage for the amount you’d like to contribute each month. Most people by default contribute 1% but aim to contribute 10% to 15%.

Be the judge for how much you can afford to contribute after covering important expenses. To stay motivated, use Personal Capital to view your net worth.

A benefit to contributing money to your retirement account is not taxed. For example, if you earn $100 and invest 10%, you’d contribute $10, then get taxed on the remaining $90. As of 2019, the most you’re able to contribute towards your 401K is 19K but this can change.

6. Consider Where to Invest Your Money

The most common way to invest your money is in stocks, but it’s not the only way. Here are other ways to invest:

Robo Advisors

Robo-advisors[4] are fancy algorithms that’ll choose the best investments for you. Sites like Wealthfront make it easy for first-time investors to invest their money. You’d input information about yourself and set your risk tolerance.

Then, set your monthly contribution amount and your robo-advisor would do the rest. Robo-advisors charge a fee to manage your money, but less than regular advisors.

Bonds

Think of bonds as “IOUs” to whomever you buy them from.

Essentially, you’re lending money and charging interest. Like stocks, not all bonds are equal. Some will be riskier than others depending on their rating.

Here are the different types of bond categories:[5]

Treasury bonds

Government bonds

Corporate bonds

Foreign bonds

Mortgage-backed bonds

Municipal bonds

Mutual Funds

Picture a group of people dumping all their money in a jar that’s managed by a professional. This is how mutual funds work. The fund manager manages the money looking to earn capital gains (interest.)

One of the best types of mutual funds is index funds. Since these funds don’t try to beat the market and instead follow it, they need less research. Because of this they often charge the lowest fees and yield the best long-term results.

Advertising

Real Estate

Yes, buying a home is an investment when done correctly.

Imagine buying a home and using it as a rental property. After repairing it, you receive a monthly surplus check of $100 to $200.

This may not sound like a lot, but repeat this process enough times and you’d earn a large amount of passive income. That’s why real estate is one of the best investments to not only retire but become wealthy.

But, it requires a lot of money to start and you should expect losing money along the way as you learn the process.

Savings Accounts

Your money can still grow in a savings account. Nowadays most online banks offer a 2% annual return. Although the average inflation is higher your money will be available when you need it.

7. Master Disincline to Dodge Short Success

Investing for retirement is a long-term strategy. That’s why you need to master delayed gratification. All this means is delaying short-term pleasure for something bigger in the future. Research shows that those who have delayed gratification are more successful.[6]

Think back to what retirement means to you. A clear purpose will help you avoid withdrawing your money during a market downturn. It’ll help you contribute more towards retirement when you’d want to waste it instead.

Your journey towards retirement will be long, so reward yourself along the way. Choose a reward that’s relevant and meaningful, so that you reinforce positive behavior. For example, after contributing more towards retirement, treat yourself to dinner.

8. Aggressively Invest on This One Investment

I’ve mentioned several types of investments but haven’t covered the most important one.

It sounds cliche but here’s why you’re your best investment towards retirement. The more you know, the more money you’ll be able to make. The more good habits you adopt, the more secure your retirement will be.

Advertising

More importantly, investing in yourself is an investment that no one can take away. There’s no market downturn nor tragic circumstance that’ll wipe your knowledge and experience.

But, how can you invest yourself?

Reading books, blogs, and anything that’ll help you learn new topics daily. Listen to podcasts and audiobooks on your commute to/from work.

Save money to buy courses and hire coaches. I used to believe hiring coaches was a waste of money when I could learn the subject alone.

But, coaches see your blind spots and hold you accountable. Hiring the right coach will help you achieve your goals faster than you would’ve alone.

Retire Happy with Excess Money

The key to a secure financial future doesn’t only belong to financial experts.

It’s possible for you and I. What if you were able to retire earlier than most people and weren’t a financial planner? What if you were able to focus on what you enjoy doing the most while your money was working hard for you?

I know this sounds impossible now, but the truth is you’re capable of taking charge of your retirement. I’m not a financial expert but I’ve learned how to invest my money by reading books and learning from others.

Investing your money is scary. So start small and invest a small amount of your money with a robo-advisor. Feel your money drop and rise for a month or two. Then, invest more and keep this up until you’re aggressively saving for retirement.

One day, you’ll wake up with a net worth you’re proud of – confident about your retirement. You now know a few strategies you can use to invest in your retirement. Will you take action to retire happy?